Transfer of farmland operation rights and improvement of productivity of farmers: theory and empirical evidence

Peihua Mao, Ji Xu, Xiaodan He and Yahong Zhou

China Political Economy, 2023, vol. 6, issue 2, 129-152

Abstract: Purpose - The results of this study have significant policy implications for charting a new course toward enhancing agricultural productivity among Chinese farmers. Design/methodology/approach - By establishing a rural household decision-making model based on the transfer market of farmland operation rights, this paper systematically analyzes the effects of land transfer-in and land transfer-out on the productivity (per labor income) of rural households. The authors conducted basic regression analysis and robustness tests using propensity score-matching and proxy variable approaches based on the micro survey data from rural households in 30 counties in 21 provinces/municipalities/autonomous regions in 2013. Findings - After the completion of land transfer, the total productivity of rural households transferring in lands will increase with an increase in the agricultural productivity; the total productivity of rural households transferring out land will increase due to a rise in non-agricultural productivity and the absolute total productivity of rural households not involved in land transfer will remain unchanged. Originality/value - Unlike previous literature, this paper discusses the impacts of land transfer-in and transfer-out on total productivity, agricultural productivity and non-agricultural productivity among various rural households (i.e. those transferring in land, transferring out land or which are self-sufficient).

Keywords: Transfer of land operation rights; Total household productivity; Household agricultural productivity; Household non-agricultural productivity (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:eme:cpepps:cpe-12-2023-036

DOI: 10.1108/CPE-12-2023-036

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